Govt. to draft new laws to attract investments in digital currency sphere

7 October 2021 03:17 am Views - 249

• Appoints an expert committee to draft policy on blockchain, digital banking and cryptocurrency
• Proposal in this regard presented by Minister Namal Rajapaksa to create a digital business environment in SL
• Currently, cryptocurrency industry remains unregulated in SL

Sri Lanka plans to draft acts, rules and regulations required to attract investments into digital banking and blockchain technology and to facilitate cryptocurrency mining companies to invest in Sri Lanka.

Minister Namal Rajapakse in his capacity as the Project Coordinating and Monitoring Minister sought the approval of the Cabinet of Ministers to appoint a committee comprising of skilled professionals in the public and private sectors to draft a report on the acts, rules and regulations required to attract investments from companies operating in these sectors and to allow the Board of Investment (BOI) to take the necessary steps under the provisions of BOI Act No. 4 of 1978, to facilitate such investments. 

“The necessity of developing a system that integrates digital banking, blockchain technology and cryptocurrency mining and other essential services has been identified to facilitate the creation of a digital business environment,” the Government Information Department noted.

At present, the cryptocurrency industry remains unregulated in Sri Lanka. However, more and more Sri Lankans are turning to peer-to-peer (P2P)-based cryptocurrency trading.  Due to this rising trend among Sri Lankans, the Central Bank (CB) recently cautioned the public on the risks involved in investing and trading in virtual currencies.
Meanwhile, MTB.LK last month became the first Sri Lankan company to start accepting payments via cryptocurrencies.

“Many countries in South Asia have already begun to evaluate through this sector and develop the said sector and prior attention needs to be given to taking the necessary steps enabling to deal with these countries on a competitive basis,” the Government Information Department said.

Minister Namal Rajapaksa took to Twitter on the Cabinet decision and applauded it saying that it would help Sri Lanka to lead the digital economy in the South Asian region.

 “#LKA is taking a leap forward today as the Cabinet approves to establish a committee to propose policy on blockchain technology, digital  banking and crypto mining! Forward thinking and proper regulatory framework will ensure that #LKA will lead the digital economy in the region,” the Twitter message read.

However, India in March this year announced its plans to slap a ban on cryptocurrency while China has already declared all cryptocurrency transactions illegal.